What happened
Canada lost 42,000 jobs in August, and the unemployment rate held at 6.4 per cent, as reported by Canadian Manufacturing. Economists had expected a gain of 15,000. It ended a run in which 181,000 jobs were added from April through July.
Manufacturing went the other way. The sector, which has taken heavy damage from US tariffs, added 22,000 jobs in August. The losses were led by business, building and other support services, followed by public administration, natural resources and utilities.
The August survey only partly captures a new wave of 50 per cent US tariffs on about $28 billion worth of Canadian goods, applied mid-month. Statistics Canada said the layoff rate was 0.8 per cent in August, down from 1 per cent a year ago. For industries that rely on US export demand, the layoff rate over the past 12 months was marginally higher than in other sectors. Average hourly wage growth cooled to 2 per cent, the lowest since November 2017.
Why it matters if you are hiring
A softer labour market usually means more available candidates, and slower wage growth takes some pressure off pay. For plants, that can make production, maintenance and quality roles easier to fill than they were in the spring.
But the manufacturing gain came before the new tariffs took full effect. Export-heavy operations face real uncertainty, and the report does not say which manufacturing subsectors drove the August gain. Plants serving domestic demand may keep hiring. Those tied to US customers may hold back or cut.
For operations leaders, the decision is about sequencing. Roles that keep lines running, such as maintenance technicians, supervisors and planners, are worth filling while candidates are available. Growth hires tied to US orders may need a trigger point before you commit.
CIBC's Andrew Grantham expects growth to slow in the third quarter. The Bank of Canada held its rate at 2.25 per cent earlier this week. Neither points to a quick change in conditions.
One thing to do this week
Sort your open and planned roles into two lists: those tied to US export volume and those tied to domestic or essential production. Fill the second list now while the pool is wider, and set a clear order-book threshold for releasing the first.
Traverse has placed operations and manufacturing people since 1997, from line leads and maintenance technicians to plant and supply chain managers, and we can help you hire the ones who keep production steady through uncertain demand.